Trump Executive Order Overhauls Drug Pricing Policies

President Trump signed an executive order proposing major revisions to prescription drug pricing policies, including significant changes to the Medicare Drug Price Negotiation Program created by the Inflation Reduction Act. The order seeks to delay Medicare price negotiations for small molecule drugs from seven to eleven years after FDA approval, a move supported by the pharmaceutical industry but criticized by some lawmakers for potentially raising costs. Additional provisions aim to expand pricing transparency, reduce the influence of pharmacy benefit managers, and require community health centers to offer discounted insulin and epinephrine to low-income patients. The order also promotes faster approval of generic and biosimilar drugs, potentially benefiting foreign manufacturers, while considering tariffs on pharmaceutical imports. Lawmakers such as Senator Peter Welch have criticized the order for favoring industry interests and undermining Medicare negotiations. Several proposed measures, including new payment models and value-based pricing in Medicaid, will require congressional approval.